Spirit Loses Big in Q3 But Optimism Reigns for Q4
1 Spirit Airlines announced its most recent earnings late yesterday. The airline lost $99.1 million — or $215 million excluding special items — on revenues of $401.9 million between July and September.
Despite the weak performance in Q3, Spirit is downright excited for the holidays. It predicts revenues will be down “only” 43 to 45% in Q4 compared to nearly 60% in Q3. October is likely dragging that number down with a capacity cut of 36%. November and December capacity is now planned to only be down 20%.
On the cost side, expenses are expected to be roughly flat between Q3 and Q4 even though Spirit will have 10% more capacity flying in Q4. It is achieving that by charging a “no-furlough fee” to all employees. Total liquidity sits at $2.1 billion made up of cash, short term investments, and BuzzBallz.
United Tries to Open Borders With Free COVID Testing Program
2 United has announced it will be launching a free COVID testing program for those on “select” flights between Newark (EWR) and London/Heathrow (LHR) between November 11 and December 16.
Rapid tests will be administered with no charge to all passengers and crew over 2 years of age — though we assume there are very few crewmembers under 2… they’ve likely all been furloughed — on United flight 14 on Mondays, Wednesdays, and Fridays during the testing period. When asked why it was limiting it to those specifically, United said there was nobody on the other flights anyway.
The point of the program is to try and nudge the authorities to open up borders and allow travel without quarantine. To that we say… best of luck. We mean it.
Silver’s Expansion Continues with Jacksonville
3 Silver has announced that its expansion streak continues with the return of service to Jacksonville, Florida. Flights will operate from both Fort Lauderdale and Tampa twice weekly.
Silver last served Jacksonville in 2018 with 1 to 2x daily Tampa flights. Those ended that November, and now Silver is back with a greatly reduced schedule that will appeal to only the most flexible leisure traveler/drug runner.
In the last couple of weeks, little Silver Airways has announced service from the South Carolina cities of Charleston and Columbia to Fort Lauderdale, Orlando, and Tampa. It has taken delivery of several new ATR aircraft in its fleet and is looking for places to profitably deploy them. This may be as close as it gets for now.
Proletariat Revolution: United Coach Passengers Can Use First Class Lavs
4 United has told its flight crews that beginning November 1, passengers can temporarily use the lavatories in any class of service, not just their own, according to a memo obtained by Skift’s Brian Sumers.
This change allows coach passengers to slip past the curtain and see what First Class passengers have been experiencing. It also enable First Class passengers to feel better about themselves by seeing the horror endured back in the coach cabin.
The policy is meant to reduce lines for the lavs, therefore improving distancing onboard. The bad news: it is just temporary, presumably until enough First Class passengers complain and United gives in.
Hawaiian Will Keep Serving Moloka’i and Lana’i Because It Has No Choice
5 Hawaiian Airlines has reversed course on its previous plan to suspend flights Moloka’i and Lana’i at the end of this month. The reversal comes in advance of an expected requirement from the government that it continue flying.
Hawaiian has served both islands via its ‘Ohana by Hawaiian regional operated by Empire Airlines. A clause in the Hawaiian pilot contract required Hawaiian to end that service until pilots were recalled from furlough, additional mainline flights between the islands resumed, and an unlimited supply of POG juice was supplied to the cockpit on every flight.
Since both cities are Essential Air Service markets regulated by the federal government — even though Hawaiian receives no subsidy — the airline had to apply for an exemption to allow service to end early. It is believed that will not be granted, so Hawaiian has instead put forth a skeleton schedule in the markets until at least mid-January.
Airline Potpourri
- Air Serbia will resume Moscow flights on November 9.
- Airbus lost more than €2 billion in the first nine months of 2020.
- Alliance Airlines in Australia has taken delivery of its first Embraer 190.
- British Airways has finalized its November schedule which includes the return of Newark flights.
- Condor will expand beyond German borders and base two airplanes in Zurich next summer to take vacationers on holiday.
- Ryanair will suspend service to all Irish airport but Dublin for four weeks starting November 4 in protest of the Irish handling of the COVID outbreak.
Andrew’s Moment of Levity
Two antennas got married last weekend. The ceremony was ok, but the reception was excellent.